Stocks sold off on Monday in reaction to the latest developments in a tit-for-tat trade dispute between the U.S. and China.

The market came under pressure following news reports that President Donald Trump was preparing a plan that would curb technology exports to China and bar many Chinese companies from investing in U.S. tech firms. The tech-heavy Nasdaq posted its worst day in three months.

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In a tweet, U.S. Treasury Secretary Steven Mnuchin disputed the reports, calling them “false, fake news.” Mnuchin said the proposed investment restrictions would apply to “all countries,” not just China, trying to steal U.S. technology.

On Tuesday, President Trump suggested that his administration will evaluate national security concerns through the Committee on Foreign Investment in the United States (CFIUS), as opposed to pursuing new tools to limit investments.

In Tuesday’s market news, General Electric’s next move will be to spin off its health care business and unload its ownership in oil-services company Baker Hughes. Shares recorded their best day in over three years.

On the economic calendar, the Case-Shiller report on home prices for April was released before the market opened. The national index rose a seasonally adjusted 0.3% and was up 6.4% for the year in April. The 20-city index rose a seasonally adjusted 0.2%, rising 6.6% compared to a year ago.

The latest reading on consumer confidence was also out. June confidence came in at 126.4, versus the Thomson Reuters consensus estimate for 128.

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In commodities, gold futures ended at a six-month low as the U.S. dollar climbed. Gold is priced in U.S. dollars, therefore, when the dollar climbs in reduces demand for the commodity by holders of international currencies.

Oil, however, rallied. U.S. crude oil futures climbed to a one-month high after the U.S. pushed for zero oil exports from Iran. Oil's climb boosted energy stocks.